AUBURN HILLS, Mich. , June 19, 2023 - BorgWarner Inc. (NYSE: BWA) and Eldor Corporation S.p.A. today announced that they have entered into a Share Purchase Agreement under which BorgWarner has agreed to acquire the Electric Hybrid Systems (EHS) business segment of Eldor for €75 million at closing with a potential additional amount due subject to an earnout.
Headquartered in Italy, Eldor's EHS segment includes on-board chargers (OBCs), DC/DC converters, and integrated high voltage boxes, all of which are expected to complement BorgWarner's existing product portfolio. The acquisition is expected to enhance BorgWarner's capabilities in engineering compact and efficient 400V and 800V on-board chargers that are compatible with the variety of regional grid configurations found globally while also bringing innovative and cost-effective high-frequency DC/DC converter technology to the portfolio. BorgWarner expects that Eldor's EHS business will generate €25 million of revenue for the full year 2023. Relative to its Charging Forward 2027 targets, BorgWarner expects that revenues will be approximately €250 million in 2027.
The transaction is subject to satisfaction of closing conditions and is expected to close in the third quarter of 2023.
"Eldor's technologies are a great complement to BorgWarner's ePropulsion portfolio, particularly as it relates to expanding in high-voltage power electronics beyond the inverter," said Frédéric Lissalde, President and CEO of BorgWarner. "As we continue with our Charging Forward M&A strategy, we look forward to welcoming Eldor's talented team to BorgWarner later this year."
"BorgWarner represents the best opportunity for the Eldor EHS team to grow further from both a professional and managerial standpoint at a global scale," said Pasquale Forte, President of Eldor Corporation. "I am proud that the value we have built together so far has been well recognized and I thank them for the passion, dedication, and skills they have demonstrated over the years."
About BorgWarner
For more than 130 years, BorgWarner has been a transformative global product leader bringing successful mobility innovation to market. Today, we're accelerating the world's transition to eMobility — to help build a cleaner, healthier, safer future for all.
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SOURCE BorgWarner
